Yesterday (January 7th), the price of Nonferrous Metals ETF Huabao (159876), which aggregates leading companies in the nonferrous metals industry, rose over 1.6% during the session and closed up 0.38%, marking its fourth consecutive daily gain. The fund recorded a turnover of 82.93 million yuan for the day, continuing its upward momentum with increasing volume and breaking through its previous listing high!
Amidst the fervent market activity, capital is actively flowing in! Data from the Shenzhen Stock Exchange shows that Nonferrous Metals ETF Huabao (159876) has seen net capital inflows for five consecutive days, totaling a substantial 1.4 billion yuan!
Notably, as of January 7th, the latest scale of Nonferrous Metals ETF Huabao (159876) reached 1.019 billion yuan, marking the first time its scale has surpassed the 10 billion yuan threshold and setting a new historical record. Among the three ETF products tracking the same underlying index in the entire market, its scale ranks first by a significant margin.
This current rally in the nonferrous metals sector is potentially driven by the convergence of four key factors: long-term supply rigidity, explosive demand from new productive forces, global liquidity easing, and the strategic upgrade of resource importance. This multi-dimensional market resonance, in terms of both sustainability and intensity, is considered rare over the past decade. Specifically: 1. On the macro level, on January 6th local time, Federal Reserve Governor Milan indicated that subsequent economic data trends might support further interest rate cuts by the Fed, suggesting the Fed should cut rates by more than 100 basis points this year. Attention is also focused on the US non-farm payrolls report for December, scheduled for release this Friday. CITIC Securities Futures expressed the view that the Fed's monetary policy in 2026 is leaning dovish, with a high probability of further gradual interest rate cuts, providing a generally positive environment for the nonferrous metals market. 2. On the industry front, the Chinese government is reportedly considering targeted tightening of export license reviews for medium and heavy rare earth-related items. Furthermore, LME copper hit further record highs on Tuesday, while LME nickel surged over 10% at one point to its highest level in 19 months. Huaxin Futures holds an optimistic outlook for the nonferrous metals market in the first quarter of 2026. They note that 2026 marks the beginning of the "16th Five-Year Plan" period, with relatively loose credit policies expected at the start of the year. The pre-Spring Festival peak consumption season is also seen as beneficial for downstream demand. 3. Fundamentally, as of January 6th, among the 60 leading nonferrous metals companies covered by the Nonferrous Metals ETF Huabao, four listed companies—Chifeng Jilong Gold Mining Co., Ltd., Zijin Mining Group Co., Ltd., Huayou Cobalt Co., Ltd., and Lizhong Group—have disclosed their 2025 performance forecasts. All have projected double-digit year-on-year growth in net profit, indicating strong earnings performance. Notably, heavyweight constituent Zijin Mining Group expects to achieve a net profit attributable to shareholders of 51 billion to 52 billion yuan for 2025, representing a year-on-year increase of 59% to 62%.
Looking ahead to 2026, Guolian Minsheng Securities points out that the continuation of the US interest rate cut cycle and ongoing liquidity easing continue to favor nonferrous metals prices. Supply-side constraints remain unresolved, compounded by numerous mine production cuts and shutdowns. On the demand side, traditional industries show considerable resilience under the global easing cycle, while emerging sectors are proliferating rapidly. The burgeoning demand from AI and energy storage is still in its early stages, suggesting the price floor for nonferrous metals is expected to rise at an accelerated pace.
[The Nonferrous Metals Trend Has Arrived, An "Super Cycle" Appears Unstoppable] Nonferrous Metals ETF Huabao (159876) and its feeder fund (Class A: 017140, Class C: 017141) track a benchmark index that comprehensively covers sectors such as copper, aluminum, gold, rare earths, and lithium. It encompasses different phases of the economic cycle, including precious metals (for hedging), strategic metals (for growth), and industrial metals (for recovery). This full-category coverage allows for better capture of the broader sector's beta movements.
Risk Disclosure: The Nonferrous Metals Leaders ETF and its feeder fund passively track the CSI Nonferrous Metals Index. The base date for this index is December 31, 2013, and it was published on July 13, 2015. The index's performance over the past five complete years is as follows: +35.84% in 2020; +35.89% in 2021; -19.22% in 2022; -10.43% in 2023; +2.96% in 2024. The composition of the index's constituents is adjusted according to its compilation rules, and its past performance does not indicate its future results. The mention of index constituents herein is for illustrative purposes only; descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for Balanced (C3) and above investors. Suitability matching opinions should be based on the selling institution's assessment. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any kind to the reader, and no responsibility is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not indicate its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest in funds with caution.
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